NEW YORK (TheStreet) -- Stock futures were extending gains Tuesday, looking to rebound after the S&P 500 suffered its largest loss in five months as two explosions at the finish line of the Boston Marathon left dozens injured in a day already pressured by a less-than-expected rise in Chinese growth.
Futures for the S&P 500 were rising 14.5 points, or 10.89 points above fair value, to 1,558 after a number of upbeat earnings announcements this morning and inflation data indicated that the Federal Reserve still has room to maintain its stimulus program.
Futures for the Dow Jones Industrial Average were advancing 138 points, or 118.8 points above fair value, to 14,650. Futures for the Nasdaq were up 26.5 points, or 19.13 points above fair value, to 2,810.
"Investor sentiment remains skeptical about a sustained recovery and a weakening economy which will place an even bigger focus on the upcoming earnings season, and geopolitical risk will continue to be at the forefront of the skepticism," Michael Bapis, the New York-based managing director and partner at HighTower's Bapis Group, said in an email amid ongoing nuclear threats from North Korea. "With a medium term investment horizon, we still believe there is upside value for the equity markets because of low rates, continued quantitative easing and ultra-lean company balance sheets, as well as favorable and in many cases, growing dividend yields."Coca-Cola (KO) was spiking 3.27% to $41.45 in premarket trading after the world's biggest beverage company beat first-quarter profit expectations by a penny and posted better-than-expected revenue as global sales volumes increased. Johnson & Johnson (JNJ) was rising 1.53% to $82.96 after the world's biggest maker of health care products booked first-quarter earnings that exceeded estimates by four cents and revenue that also topped estimates as sales strengthened in both the U.S. and overseas, though international sales grew at a slower clip than domestic sales. Goldman Sachs (GS) was wavering near the flat line after the investment bank reported a return on equity of 12.4% for the first quarter, beating some estimates, and much better than expected earnings on record debt underwriting. Yahoo! (YHOO) is expected by analysts after Tuesday's closing bell to report first-quarter earnings of 24 cents a share on revenue of $1.1 billion. Shares were rising 1.58% to $24.36 Tuesday. Shares of the Internet company have risen about 55% since Marissa Mayer joined the company last summer. Intel (INTC), whose processors are inside about 80% of the world's PCs, is forecast by Wall Street to report first-quarter profit of 41 cents a share on revenue of $12.59 billion after the closing bell. In the first quarter of 2012, Intel earned 53 cents a share on sales of $12.9 billion. The Bureau of Labor Statistics reported Tuesday inflation numbers that were within the Fed's comfort zone. The Consumer Price Index fell 0.2% in March after increasing 0.7% in February; economists were expecting it to be unchanged for last month. The CPI, excluding food and energy costs, rose 0.1% after increasing 0.2%; the consensus was for a rise of 0.2%. The Census Bureau said that housing starts improved to a seasonally adjusted annual rate of 1.036 million in March from a 968,000 pace in February, though all of it was attributable to multifamily housing starts, which tend to display significant month-to-month volatility. Expectations were for a rise to an annual rate of 930,000. "The volatile nature of the multi-family series leaves us cautious of reading too much into the data," Ian Lyngen, a government-bond strategist at CRT Capital Group LLC in Stamford, Conn. said in a note. The report said that building permits came in at 902,000, down from a downwardly-revised 939,000 and below expectations of a 940,000 annual rate. The Federal Reserve releases industrial production and capacity utilization numbers for March at 9:15 a.m. Industrial production is predicted to have ticked up 0.2% in March after increasing 0.7% in February. The capacity utilization rate is estimated to have risen to 78.4% in March from 79.6% in February. May crude oil futures were paring losses as they slipped 16 cents to $88.55 a barrel on the New York Mercantile Exchange, while June gold futures were bouncing back by $32.70 to $1,393.80 an ounce after the prior session's sell-off in commodities on weak China growth reports. The benchmark 10-year Treasury was plunging 12/32, boosting the yield to 1.73%. The dollar was falling 0.42% to $82.06 according to the U.S. dollar index. Written by Andrea Tse in New York >To contact the writer of this article, click here: Andrea Tse.
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